Telkom contract cancellation charges

[Next Thing]

Would have thought by now people would have learnt that contracts are baaad

 

[Danie_V]

Yes Telkom's contracts are really terrible. I discovered on a mobile contract that I had to pay a R200 admin fee to UPGRADE the contract with them. It was easier to just cancel. When I got Fixed LTE through them it did work quite well actually, but the service was terrible and after hours you could reach no-one, with same issue around wanting to change the speed. I paid over R1,000 to cancel that contract with Telkom (as I had renewed it about 6 months before that), but luckily Afrihost had a special and was reimbursing new subscribers for most of their cancellation costs. I will never go back to Telkom, even if Afrihost is a bit more, because with Afrihost (and I'm sure others too) you could cancel without penalty after only a few months (that is where the ISP paid the installation and connection costs or provided a modem etc), and I can switch packages without any penalty, and there is someone there to respond for trouble tickets.

Fact is Telkom has never really adjusted to a free market with competition, even through technically their products are quite good.

 

[shearder]

that is IF you can get it cancelled!!! I cancelled a contract a few months early. I never received a final invoice and eventually a debt collector called me and said i owe money i said ok i will send 50 bucks and they said NOOOO so i said well, how do i know what to pay when i never received a final invoice.

So the debt collector sent me the final invoice. which was R8k+ - cool, i said i would pay, 2 days later an attorney called, i gave proof of payment then notified it is closed.

3 weeks later i get a call from OTHER debt collectors that i owe Telkom R9100 i said NOPE talk to telkom and get it right.

They called again and i said i owe nothing, talk to telkom. Eventually i gave in and sent the last invoice showing payments received and current month costs R0.00

I got an SMS today with URGENT notice to login to some site for a message about my telkom account LMFAO

very tiring and ramapoepal wants to push harder on bee?? LOL isn't it already a failure!!

 

[xrapidx]

Took me 3 months of fighting to cancel a month to month contract.

 

[ToxicBunny]

that is IF you can get it cancelled!!! I cancelled a contract a few months early. I never received a final invoice and eventually a debt collector called me and said i owe money i said ok i will send 50 bucks and they said NOOOO so i said well, how do i know what to pay when i never received a final invoice.

So the debt collector sent me the final invoice. which was R8k+ - cool, i said i would pay, 2 days later an attorney called, i gave proof of payment then notified it is closed.

3 weeks later i get a call from OTHER debt collectors that i owe Telkom R9100 i said NOPE talk to telkom and get it right.

They called again and i said i owe nothing, talk to telkom. Eventually i gave in and sent the last invoice showing payments received and current month costs R0.00

I got an SMS today with URGENT notice to login to some site for a message about my telkom account LMFAO

very tiring and ramapoepal wants to push harder on bee?? LOL isn't it already a failure!!

Tell them to fsck off and if they keep phoning you tell them you'll lodge a harassment charge at the police station, that is usually enough to get them to fsck off. Your contract was with Telkom and you've now settled it with Telkom. You have zero responsibility to provide documentation or even entertain them anymore.

I had a similar experience when cancelling my ADSL ages ago... even to the point a Debt collector tried to pretend to be Telkom and then got very nervous when I cottoned on to the issue and threw my toys at them.

 

[The_Ogre]

My last contract ended in 2010 when I realised I'm much better off with prepaid and buying my phones cash.

 

[Kosmik]

How much it costs to cancel a contract with Telkom

Telkom customers wishing to cancel their cellular contact can expect to pay the remaining value of their contract plus a R809 cancellation fee.

South African mobile contract subscribers can cancel their agreement with the operator if they are dissatisfied with the service, device, or customer service.

Pretty sure this was ruled illegal a while ago, they cannot charge you for the remainder of the contract, only a "relevant" cancellation fee and a device recovery is allowed.

 

[quovadis]

Pretty sure this was ruled illegal a while ago, they cannot charge you for the remainder of the contract, only a "relevant" cancellation fee and a device recovery is allowed.

I think for the most part that's exactly what they're doing.

 

[Kosmik]

Cancelling Your Cellphone Contract: What You Need to Know

Cancelling your cellphone contract can be a tedious and stressful process, but the Consumer Protection Act protects your rights in South Africa.

www.lawforall.co.za

Cancelling your cell phone contract is easy - South Africa

Cancelling a cell phone contract may cost fees. The Consumer Protection Act helps you cancel a mobile phone contract with Vodacom, MTN, Cell C or Telkom.

www.golegal.co.za

How much it costs to cancel your mobile contract

This is how much you will pay to cancel your mobile contract with Vodacom, MTN, Telkom, or Cell C before its original termination date.

mybroadband.co.za

However, always remember that with every decision in life and especially when ending a relationship, there may be consequences to your actions. What do I mean? Any charge that may occur due to early cancellations.

Mind you, the service provider can only charge a “reasonable penalty” which in terms of Regulation 14(2) of the CPA means that they “may not exceed a reasonable amount”.In other words the service provider is expressly prohibited from charging the full amount owing in respect of the remainder of the contract. I sense an “Amen” somewhere.

You will however be liable to your service provider for the amounts owed up to the date of cancellation, such as the airtime you have already used to date plus any SMS’s or data bundles used to date. Fair enough I guess. (For a full list of various factors taken into account when arriving at a reasonable amount refer to Regulation 5(2) of the CPA).

Keep in mind though that while the CPA is on your side, the consequences you may have to face all depend on the service provider you are breaking up with. According to a Business Tech article entitled “SA mobile contract cancellations: what you will pay”, the following is set out:

“while the Consumer Protection Act has ensured increased protection for consumers, SA mobile operators vary when it comes to charging for early contract cancellations.

Section 14 of the Consumer Protection Act (CPA) determines that subscribers are allowed to terminate a mobile contract at any time before the agreed expiry date.

While you don’t have to provide any specific reason for doing so, you will have to give the operator 20 business days’ notice in writing.

The network will then bill you for an outstanding “reasonable amount”.

This may be the same or more than the full amount that subscribers would pay if the contract had it run its course.

The CPA states that the amount must be calculated using the following criteria:

• The amount which you are still liable for, up to the date when cancelling the agreement.
• The value of transactions up to the cancellation date.
• The cost of the goods which will remain in your possession.
• The value of the products that you return to the supplier.
• The original duration of the agreement.
• The losses suffered or benefits you enjoyed as a result of entering into the contract.
• The length of notice of cancellation you provide.
• General industry practice — in telecoms, this will include all amounts owed for airtime, SMS, and data bundles that have already been used.

As per a previous mybb article ( July 2021 ),

Mobile contract cancellations compared
Network	Costs (sum of all items listed)	Recommended cancellation channels	Cancellation time
Vodacom	Remaining monthly subscription costs x 0.75 Devices fees x Number of months remaining on the contract	082 135 [email protected]	20 business days’ notice
MTN	The remaining balance of the value of the mobile device The monthly subscription up to the date it ends All usage charges up to and including the date the contract ends All other amounts that MTN is allowed to charge the consumer as per the agreement up to that date An additional one month’s subscription	[email protected]	20 business days’ notice
Telkom	Costs associated with the device Costs associated with the provisioning of services Admin fees	From mobile – 081 180 From telephone – 10210	30 days notice
Cell C	The remaining value of the handset at the time of the cancellation The amount on the current invoice	084 143 [email protected]	24 to 72 hours after payment is made

 

[quovadis]

@Kosmik - Assuming the service is the difference mostly for the 24->36 month total cost difference essentially only a small amount is not the device cost itself?

 

[Kosmik]

@Kosmik - Assuming the service is the difference mostly for the 24->36 month total cost difference essentially only a small amount is not the device cost itself?

The device cost they can fully recover but this is illegal

To quote @Jan

Telkom customers wishing to cancel their cellular contact can expect to pay the remaining value of their contract plus a R809 cancellation fee.

South African mobile contract subscribers can cancel their agreement with the operator if they are dissatisfied with the service, device, or customer service.

Only the remaining device value, current billing charges and a reasonable cancellation are allowed , reasonable cancellation being the R809 for admin and sundries. You also can cancel for whatever reason you like, as long as you give 20 working days notice.

Mind you, the service provider can only charge a “reasonable penalty” which in terms of Regulation 14(2) of the CPA means that they “may not exceed a reasonable amount”.In other words the service provider is expressly prohibited from charging the full amount owing in respect of the remainder of the contract.

 

[Danie_V]

that is IF you can get it cancelled!!! I cancelled a contract a few months early. I never received a final invoice and eventually a debt collector called me and said i owe money i said ok i will send 50 bucks and they said NOOOO so i said well, how do i know what to pay when i never received a final invoice.

So the debt collector sent me the final invoice. which was R8k+ - cool, i said i would pay, 2 days later an attorney called, i gave proof of payment then notified it is closed.

3 weeks later i get a call from OTHER debt collectors that i owe Telkom R9100 i said NOPE talk to telkom and get it right.

They called again and i said i owe nothing, talk to telkom. Eventually i gave in and sent the last invoice showing payments received and current month costs R0.00

I got an SMS today with URGENT notice to login to some site for a message about my telkom account LMFAO

very tiring and ramapoepal wants to push harder on bee?? LOL isn't it already a failure!!

You're so right - I'd heard of those issues and went in personally, and got a receipt. That said, I also learn there ere real Telkom stores, and others branded as Telkom stores, but are a 3rd party store. Only the real Telkom store can do the cancellation. Yes, it was a major pain. I just cannot believe Telkom gets away with all this, and people still sign up with them. I vowed never again, even if I have to pay more, it is worth it to get better service.

 

[quovadis]

The device cost they can fully recover but this is illegal

To quote @Jan



Only the remaining device value, current billing charges and a reasonable cancellation are allowed , reasonable cancellation being the R809 for admin and sundries. You also can cancel for whatever reason you like, as long as you give 20 working days notice.

I understand your argument completely I'm just arguing its very similar depending on the value of the phone. At least for the example given - If the phone costs R18k retail it's not that far off the mark having to pay an additional month (notice) and cancellation fee.

 

[Kosmik]

I understand your argument completely I'm just arguing its very similar depending on the value of the phone. At least for the example given - If the phone costs R18k retail it's not that far off the mark having to pay an additional month (notice) and cancellation fee.

Ah yes, quite possibly.